In Part Summary Professor Joel Huber Fuqua School
In. Part: Summary Professor Joel Huber Fuqua School of Business
How In. Part Secured Venture Capital n n Unambiguous value-added benefit Clear path to success Big payoff if successful Reduce risk q q q Best people VC’s co-opted as directors Flexibility--IPO or buyout
What happened to In. Part? n n Played manufacturers against each other— 33 parts suppliers sign on 200 design firms paid about $1000/seat to be part of the system Used Parametric to sell system, and In. Part to sell Parametric 1998 Parametric bought In. Part for $45 MM in stock
What happened to Stacey Lawson? n n n She had a 10% stake in In. Part 1998 VP of Parametric with focus on new produts and strategy and their new Windchill product 2002 joins Seibel Systems as VP to build their Employee Resource Management system Source: Google: Stacey Lawson + Date, company
What happened to Cad Vendors? n Leaders (2002) q q q n IMB-Dassault-SAS --$1. 6 B Electronic Data Systems--$1. 5 B Parametric-- $. 8 B…same level as 1998! Focus q Links to procurement, manufacturing, accounting —Enterprise software Source: WSJ 10/10/2002
What happened to Parametric? Stacey Lawson Leaves Source: Dow Jones Online
Parts suppliers migrated to electronic catalogs
Lessons: Need to understand the motives of all parties n Designers q q n Product manufacturers q q n Value per design depends on firm size Organizational resistance to the service Cost savings Market change CAD vendors q q Motivated to internally replicate In. Part’s business Opportunity for an exclusive alliance
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